Pirates, Knights and Credit Reports

By Renee, LSWA

"I'm singin' F to the R to the E to the E to the C to the R to the E D I T
RE to the PORT to the dot to the com, Come on everybody grab your bikes and sing along."

We all know the commercials and could probably sing every one of them, but do we really get it? Knowing what is on our credit report is crucial to everything we do from renting/buying a house, buying a car, even some jobs are looking at our credit reports. But beyond knowing what our credit report says, we need to be focusing on keeping our credit in good standing. I can not stress this enough. Get on a budget and keep yourself out of debt! I work with families every day whose only barrier to moving on from homelessness to self-sufficiency is poor credit. Landlords don't want to rent to someone who has a history of bad debt and/or foreclosures or evictions. Now I know that not all debt is the result of poor money management but the majority of it is.

How do I find out what my credit report says?

This is the easy step. Go to Annual Credit Report or call 1-877-322-8228 to order your free annual report. You are entitled to a free report from each of the three consumer reporting agencies a year. Depending on your situation you can choose to get them all at once or space them out over the year and get a report every four months. This website is the only authorized online source for your free annual credit report from the three reporting companies. There are other places to go, like the company in the catchy jingle, but most come with some type of requirement like signing up for a "free trial." This is not necessary. Bypass the "free trial" and just get your free reports. If you want a credit score, however, there is usually a fee associated with this.

How do I repair my credit?

Don't be scammed by companies that promise, for a fee, to help you clean up your credit report and erase you bad debt forever. Only time, effort and dedication on your part and repayment plans will improve your credit. According to the FTC (Federal Trade Commission), "everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost." You can dispute mistakes or outdated items for free by writing a letter to the consumer reporting company. Send it certified mail, "return receipt requested," and keep copies of everything. You can go to FTC for more details about this process and the Fair Credit Reporting Act. When negative information in your report is accurate, only the passing of time can get it removed. Most negative information can be reported for seven years and bankruptcy information for 10 years. If you do choose the services of a credit repair organization, they are required by law to give you a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract. They must give you a written contract that spells out, in detail, your rights and obligations as well as their services and fees. If you have been the victim of credit repair scams, contact your local consumer affairs office or your state Attorney General.

Reputable credit counseling organizations can advise you on managing your money and debts, developing a budget and often offer free educational materials and workshops. Your personal bank may be a good resource for this. For more information, see "Knee Deep in Debt" and "Fiscal Fitness: Choosing a Credit Counselor" at FTC.

I don't have poor credit. Why should I review my credit report?

Because the information it contains could affect your ability to get a loan or secure insurance and how much you pay for it. It is important to make sure all of the information is accurate and up-to-date especially before you go to apply for a major purchase. You also want to guard against identity theft. No one wants the nightmare that identity theft could bring to you and your family for years to come.

Guard your credit and protect your family from the far-reaching consequences of bad debt. Make financially sound decisions so you don't have to go live as a knight at the Renaissance Fair or put your pirate hat on and sell fish to tourists in t-shirts!